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Wiki3 Diff Stores


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Wiki3 Diff Stores

  1. 1. Different Types of Stores By Katie Miller
  2. 2. Three Tiers of Department Stores <ul><li>First Tier : upscale, high fashion chains with exclusive designer merchandise and excellent customer service. </li></ul><ul><li>Example: Nordstrom, Neiman Marcus, Bloomingdales, Saks </li></ul><ul><li>Second Tier : Retailers sell more modestly </li></ul><ul><li>priced merchandise with less customer service: </li></ul><ul><li>Example: Macy’s </li></ul><ul><li>Third Tier : Value oriented caters to more price conscious customer </li></ul><ul><li>Example: JCPenney, Sears, Kohl’s </li></ul>
  3. 3. Issues in Department Store Retailing <ul><li>Competition </li></ul><ul><li>- Discount Stores on Price </li></ul><ul><li>-Specialty Stores on Service, Depth of Assortment </li></ul><ul><li>Lower Cost by Reducing Services </li></ul><ul><li>-Centralized Cash Wraps </li></ul><ul><li>More Sales </li></ul><ul><li>-Customers Wait for Sale </li></ul><ul><li>Focus on Apparel and Soft Home </li></ul><ul><li>Develop Private Labels and Exclusive Brands </li></ul>
  4. 4. Full-Line Discount Stores <ul><li>Full line discount stores are retailers that offer a broad variety of merchandise, limited service, and low prices. </li></ul><ul><li>Offer both private labels and national brands. </li></ul><ul><li>Wal-Mart alone accounts for 66% of full-line discount sales. </li></ul><ul><li>Full-line discount stores confront intense competition from discount specialty stores that focus on a single category of merchandise. </li></ul><ul><ul><ul><li>(Office depot and Bed & Beyond) </li></ul></ul></ul>
  5. 5. Issues in Discount Store Retailing <ul><li>Only Big Three Left </li></ul><ul><li>Wal-Mart, Kmart, Target </li></ul><ul><li>Wal-Mart’s Dominance </li></ul><ul><li>Differentiate Strategy </li></ul><ul><li>Wal-Mart = Low Price and Good value </li></ul><ul><li>Target = More Fashionable Apparel </li></ul><ul><li>Competition from Category Specialists </li></ul><ul><li>Toys-R-Us, Circuit City, Sports Authority </li></ul>
  6. 6. Specialty Stores <ul><li>Specialty stores concentrate on a limited number of complementary merchandise categories and provide a high level of service in a small stores. </li></ul><ul><li>They tailor their retail strategy toward specific market segments by offering deep but narrow assortments and sales associate expertise. </li></ul>
  7. 7. Issues in Specialty Store Retailing <ul><li>Mall-Based Apparel Retailers </li></ul><ul><li>Decline in Mall Shopping and Apparel Sales </li></ul><ul><li>-Lack of New Fashions </li></ul><ul><li>-Less Interest in Fashion </li></ul><ul><li>-Increase Price Consciousness </li></ul><ul><li>Lifestyle Formats – Abercrombie and Fitch and Hot Topics </li></ul>
  8. 8. Drugstores <ul><li>Drug stores are stores that concentrate on health and personal grooming merchandise. </li></ul><ul><li>Experiencing sustained sales growth because of the aging population. </li></ul><ul><li>Drug store competition </li></ul><ul><ul><ul><li>Pharmacies in discount stores </li></ul></ul></ul><ul><ul><ul><li>Prescription mail-order retailers </li></ul></ul></ul>
  9. 9. Issues in Drug Store Retailing <ul><li>Consolidation – Walgreens, CVS, Rite-Aid </li></ul><ul><li>Evolution to a New Format </li></ul><ul><li>-Stand Alone Sites with Drive Thru Windows </li></ul><ul><li>-offering more frequent purchase food items </li></ul><ul><li>Improved systems provide personalized service in the pharmacy </li></ul>
  10. 10. Category Specialists <ul><li>Deep and Narrow Assortments of merchandise. </li></ul><ul><li>Use a self-service approach, but they offer assistance in some areas of the store. </li></ul><ul><li>Wholesaling to Business Customers and Retailing to Consumers </li></ul><ul><li>Incredible Growth </li></ul>
  11. 11. Category Specialists Continued… <ul><li>A home Improvement center is a category specialist offering equipment & material used by do-it-yourselfers & contractors to make home improvements. </li></ul><ul><li>Complete category assortment at low prices. </li></ul><ul><li>The largest U.S. home improvement chains </li></ul><ul><ul><ul><li>Home depot </li></ul></ul></ul><ul><ul><ul><li>Lowes </li></ul></ul></ul>
  12. 12. Home Improvement Centers <ul><li>Displays are warehoused </li></ul><ul><li>Customer Service: How to select and how to use merchandise </li></ul><ul><li>Competition focuses on price, effort to differentiate and services provided </li></ul>
  13. 13. Off-price Retailers <ul><li>Also known as Close-out retailers wh0 sell end-of–the-season items </li></ul><ul><li>Offers an assortment of name-brand merchandise at low prices. </li></ul><ul><li>Merchandise might be odd sizes or unpopular colors/styles. </li></ul><ul><li>Buy at lower prices </li></ul><ul><li>Purchased at 1/5 to ¼ of the original whole sale price </li></ul>
  14. 14. Off-price Retailers <ul><li>Outlet stores are off price retailers owned by department or specialty stores. </li></ul><ul><li>Factory Outlets are owned by manufacturers. </li></ul><ul><li>Outlets are viewed to improve their revenues from irregulars, production over-runs, and returned merchandise. </li></ul>